United Rentals Inc. (NYSE:URI)

Net Fixed Asset Turnover

The net fixed asset turnover ratio increased from 0.79 in 2018 to a peak of 0.92 in 2020, indicating improved efficiency in utilizing fixed assets to generate revenue. However, this ratio declined in subsequent years, falling to 0.87 in 2021 and further to 0.82 in 2022, suggesting a reduction in fixed asset utilization efficiency over the last two years.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This adjusted ratio followed a similar trend, rising from 0.79 in 2018 to 0.85 in 2019 and maintaining that level in 2020. A decline is observed thereafter, with the ratio dropping to 0.81 in 2021 and 0.78 in 2022. The lower values compared to the unadjusted fixed asset turnover indicate that leasing assets impacts the efficiency metrics, but the trend remains consistent with an initial improvement followed by a decline.

Total Asset Turnover

Total asset turnover improved from 0.44 in 2018 to 0.49 in 2019, indicating better overall asset utilization. It slightly decreased to 0.48 in 2020, and then remained stable at 0.48 for both 2021 and 2022. This suggests stabilization in the company's ability to generate revenue from its total assets after an initial improvement.

Equity Turnover

Equity turnover demonstrated a notable declining trend, decreasing from 2.36 in 2018 to 1.65 in 2022. The most significant drops occurred between 2019 and 2021, with equity turnover falling from 2.44 to 1.62. This decline indicates that the company generated less revenue per unit of equity over time, which may reflect changes in capital structure, profitability, or operational performance.

Revenues

Revenues exhibited a generally positive trend over the analyzed period. Starting at 8,047 million USD in 2018, revenues increased to 9,351 million USD in 2019, then experienced a decline to 8,530 million USD in 2020. Following this, revenues rebounded to 9,716 million USD in 2021 and reached a peak of 11,642 million USD in 2022. This pattern suggests resilience with a temporary downturn in 2020, potentially indicative of external factors affecting performance that year.

Property and equipment (rental and non-rental), net

The net value of property and equipment showed fluctuations but an overall increasing trajectory. Beginning at 10,214 million USD in 2018, it rose slightly to 10,391 million USD in 2019 before decreasing to 9,309 million USD in 2020. Then, it increased significantly to 11,172 million USD in 2021 and to 14,116 million USD in 2022. This indicates ongoing investment or acquisition activity especially notable after 2020, which could be reflective of capital expenditure to support revenue growth or fleet expansion.

Net fixed asset turnover

The net fixed asset turnover ratio showed a declining trend after an initial increase. It improved from 0.79 in 2018 to 0.9 in 2019 and slightly to 0.92 in 2020, indicating more efficient use of fixed assets to generate revenue during this period. However, it decreased to 0.87 in 2021 and further to 0.82 in 2022. This decline despite rising revenues suggests that the asset base grew at a faster pace than revenue generation in the latter years, potentially indicating underutilization of assets or a lag in revenue recognition from recent investments.

The annual financial data reveals several notable trends over the examined period. Revenues exhibit a generally positive trajectory, increasing from US$8,047 million in 2018 to US$11,642 million in 2022. Despite a dip in 2020, likely influenced by external factors, the overall revenue trend demonstrates consistent growth, with particularly strong increases in 2019 and 2022.

Regarding property and equipment, including rental and non-rental assets as well as operating lease right-of-use assets, the net values increase steadily from US$10,214 million in 2018 to US$14,935 million in 2022. This upward trend suggests ongoing investments in asset base expansion or renewal throughout the period, with a notable acceleration in growth observed from 2021 to 2022.

The net fixed asset turnover ratio, which measures revenue generated per dollar of fixed assets, displays some fluctuation. It rises from 0.79 in 2018 to peak at 0.85 in 2019 and maintains at that level in 2020 before declining to 0.81 in 2021 and further to 0.78 in 2022. This decline despite rising revenues and asset base indicates that asset utilization efficiency may have decreased in the latter years, possibly reflecting the impact of accelerated asset accumulation outpacing revenue growth or operational challenges affecting asset productivity.

Revenues

Consistent upward trend with slight volatility; lowest in 2020, highest in 2022.

Property and Equipment (net)

Continuous growth each year; notable jump from 2021 to 2022 suggesting increased capital expenditure or asset acquisitions.

Net Fixed Asset Turnover

Initial improvement followed by gradual decline, pointing towards a reduction in the efficiency of asset use relative to revenue generation.

Overall, the data indicates expansion in business scale and asset base, aligned with revenue growth, but accompanied by a moderation in asset efficiency over the recent years. This suggests that while growth opportunities are being pursued through asset investments, attention may be needed to optimize asset utilization to sustain profitability and operational efficiency.

The financial data reveals several trends in the company's performance and asset utilization over the five-year period ending in 2022.

Revenues

There is a general upward trend in revenues, increasing from $8,047 million in 2018 to $11,642 million in 2022. However, the growth pattern is not uniformly steady. After reaching $9,351 million in 2019, revenues experienced a decline in 2020, dropping to $8,530 million. This was followed by recovery and growth in the subsequent years, reaching $9,716 million in 2021 and then a significant increase in 2022.

Total assets

Total assets showed an initial increase from $18,133 million in 2018 to a peak of $20,292 million in 2021. There was a slight dip in 2020 to $17,868 million, mirroring the pattern seen in revenues. By 2022, total assets rose substantially to $24,183 million, indicating ongoing investment and expansion of asset base.

Total asset turnover

The total asset turnover ratio remained relatively stable over the period, fluctuating slightly between 0.44 and 0.49. Starting from 0.44 in 2018, the ratio increased to 0.49 in 2019, then adjusted to 0.48 in 2020 and maintained this level through 2022. This indicates a consistent efficiency in using assets to generate revenues despite growth in asset base and revenues.

In summary, the company experienced strong revenue growth over the five years with a temporary setback in 2020, likely reflecting external market challenges. The asset base expanded steadily, with significant increases in the final year. The consistency in asset turnover ratio suggests stable operational efficiency despite the expansion in scale.

The financial data reveals several notable trends over the five-year period ending on December 31, 2022.

Revenues

Revenues exhibit a generally positive trajectory with an increase from $8,047 million in 2018 to $11,642 million in 2022.

A slight decline occurred in 2020, where revenues decreased to $8,530 million from $9,351 million in 2019, likely indicative of an external disruption or market contraction during that year. However, revenues rebounded strongly in 2021 and continued their upward momentum into 2022.

Stockholders’ Equity

Stockholders' equity shows consistent growth throughout the entire period, rising from $3,403 million in 2018 to $7,062 million in 2022.

The steady increase in equity suggests ongoing capital accumulation, retained earnings, or other equity-favorable events, reflecting an expanding capital base and potentially improved financial stability over time.

Equity Turnover

Equity turnover, which measures how efficiently the company uses equity to generate revenues, demonstrates a declining trend from 2.36 in 2018 to a low of 1.62 in 2021 before a modest uptick to 1.65 in 2022.

The declining ratio implies that while equity has been growing, revenues have not increased proportionally at the same pace, potentially indicating lower efficiency in equity usage during this timeframe. The slight recovery in 2022 may signify improvements in operational efficiency or revenue generation relative to equity.

Overall, the data illustrates expanding revenues and equity, with a more moderate and somewhat recovering variation in equity turnover. This pattern points to positive growth and financial strengthening, accompanied by a need to optimize the leverage of equity in generating revenues.